#TEDxMS 2013 : Individuals Changing Lives One Loan at a Time via KIVA

2009-2012

2009-2012

2009-2012

35th birthday

For many of us, global poverty feels impossibly large.

With half the planet living on less than $3 a day, it's easy to get overwhelmed to the point where we fail to act.

It's easy to forget the power that we have as individuals.

Premal shahPresident, Kiva.org

HOW?Part I - individuals changing individuals via Kiva

Part 2 - changing the game in entrepreneur funding

Donate and buy my right to go on with my

(affluent) day

Feel powerless

Do something that actually matters.....?

Microloans to creating micropreneurs

Microloans to creating micropreneurs

Peer-2-peer lending - idle money becomes capital

peer-2-peer micropaymentsconnected global market/

community of willing borrowers and lenders

+

Elizabeth Omalla

Ugandan widow with 11 dependents

Borrowed $500 in ’05

Purchased freezer, fish at wholesale prices

0

125

250

375

500

1 2 3 4 5 6 7

7 loans in Uganda$3,500

mils cumm loans

461mil1.1mil entrepreneurs

72 countries99.98% repayment

Small loans $ mil crowdfunded per year

watch live loans at kiva.org/live

$1mil lent every 3 days!

975,394who lend on KIVA

1.1milentrepreneurs funded

:

Each one of us can directly change 1 life by turning spare change into

small biz capital

PART II

kiva as a bigger “catalytic” force

.....how about partnering the global crowd to disrupt the way social lending works

?

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KIVA CAPITAL IS CROWD-FUNDEDTHUS, UNIQUE FROM OTHER SOURCES

DO GOOD, ZERO INTERESTSMALL AMOUNTS $25HIGH RISK TOLERANCEDIVERSE BASE & LENDING

PHILOSOPHIES

uniquely placed to test game-changing social innovations

higher edu

green/energy

women conflict areas

low cost/ scalable

technology

$

Loans to conflict or post-conflict zones to fund small business recovery

6-20 year higher education loanshttp://www.kiva.org/labs/accesstoeducation

Rosemary, South AfricaThe first pilot batch to fund her tuition through a Kiva loan.

• Student loans for low income require long terms and grace periods and affordable interest rates

• zero credit history

• zero collateral• The opportunity

cost and risk just too high for normal financial institutions

Green “in-kind” loans (e.g. working with biodigester company, not bank)

zip loan

26

27Kiva Zip uses strangers online to fund entrepreneurs deemed“too risky” for any bank or MFI - and does so at half the cost

$0

$0.25

$0.50

$0.75

$1.00

Top 5 U.S. MFI * U.S. MFI avg. ** Kiva Zip Q2 2013 actual Kiva Zip 2013 forecast

* Source: MFI Annual Report; ** Source: AEO

In just 18 months, Kiva Zip is already more efficient than any U.S. microlender

Industry ave $0.42 per $1

Kiva Zip is at $0.25 today

costs $0.87 to admin $1 of microloans**

Startup< 1 year1 - 3 years3 - 5 years> 5 years

More than 50% of microloans are to biz < 1 year of borrowers never got

a college degree30%to ethnic minorities55%borrowers live in households earning less than $20k / year64

28Disrupting the current MFI model - then exporting it

0k

5k

10k

15k

20k

2011

2012

2013

2014

2015

2016

Kiva Zip aims to support more entrepreneurs per year than the entire U.S. micro-finance industry by 2016

Current U.S. microfinance industry (total loan volume est 400+ MFIs)

400 MFIs in the U.S.

millions ofBut

small biz assistance providers

Farmer support groups

faith based orgs

communities &

associations

public & private

individuals who care enough

Universities & technical

schools

Veteran groups

Tech Incubators

reformed criminal support groups

minority, refugee &

women assistance

groups

Each one of us can directly change lives by turning spare change into

small biz capital.

wanna try?

LEND: Kiva.orgLEARN: Kiva.org/labsJOIN: kiva.org/team/malaysiaVOLUNTEER: Kiva.org/fellows

SAY HELLO: hellosulinlau@gmail.com, @sulinlau